ANÁLlSE INSTITUCIONAL DO MECANISMO DE PAGAMENTO POR SERVICOS AMBIENTAIS: o Projeto Conservador das Águas em Extrema - MG

Economic incentive mechanisms are being accessed by public policies to promote environmental conservation. The environment services payment is one of these, and in Brazil the Water Conservation Project in Extrema - MG is its prominent case. The paper analyses how the trajectory and inter-institutional relations determinated the existence and development ot this project, considering the advances and limitations ot this case for the mechanlsm's effectiveness. It concludes that the project creation influenced formal and informal institutions and promoted inter-relationships among key- actors and stakeholders which were fundamental to the achieved results . The polítical stability, technical experience, the interest and personal dedication ot its founder, along with a central management were essential aspects to the projsct's existence. However, there are limitations and concerns that the mechanism leads to economic reductionism to deal with complex problems that concerns to the relatlons between society and environment.